Week 4 Assignment:

Responses to each question should fully answer and explore the question, may be less than or around 500 words (or whatever word count fully answers each question), and should be supported with scholarly research from your textbook and also often from outside internet sources, excluding wiki sources. Remember that well-written responses do not need to be excessively wordy. Be sure to paraphrase and cite your sources. Refer to APA.

Check Your Understanding (40%):

1. Explain the term corporate governance

2. Explain the importance of the “King I” and “King II’ reports.

3. Why do corporations need a board of directors?

4. What is the value of adding “outside directors?”

Exercises (20%) approx. 250 words

1. Which is more important to effective corporate governance: an audit committee or a compensation committee? Why? Explain your answer.

Case Study (40%) approx. 500 words

Review issues 4, 8, 9, 12, and 13 from Taking Sides. Choose one issue to respond to. Which viewpoint do you side with? Why? Explain. Reference at least two outside resources that further support the viewpoint you side with.

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